Abstract:

In 2019, the ratio of oil importation reached 72% in China and automotive vehicle exhaust is the main source of urban air pollution. The promotion of electrification in the transportation sector therefore has strategic significance to the energy transition of China. According to statistics from the State Information Center, the sales of electric vehicles (including BEV and PHEV) in China reached 1.2 million in 2019, and China remains the world's largest electric vehicle market. Since the development of power electronics technology, the use of electric vehicles as a new energy storage facility allows a bidirectional power flow between grid and vehicle through V2G (Vehicle to grid) mode, and this could be an important mean to increase the flexibility and reliability of power gird. This article sorts out the grid application of V2G, and analyzes the benefits and costs of V2G service providers participating in various applications based on the current electricity price policy and power battery cost through calculation examples. The economics of V2G mode is strongly impacted by electricity price policies, and depends on the maturity of electricity spot market and related ancillary service market. The promotion of V2G in the future will rely on the design of reasonable electricity market entry barriers and electricity price compensation mechanisms.

Key words: V2G, peak shaving, frequency regulation, spinning reserve, spot market